Crimson Tide Music Academy offers lessons in playing a wide range of musical instruments. The unadjusted trial balance as of December 31, 2024, appears below. December 31 is the company’s fiscal year-end.

In addition, the company had the following year-end adjusting entries.

Required:
Complete the following steps:
1. Enter the unadjusted balances from the trial balance into T-accounts.
2. Post the adjusting entries to the accounts.
3. Prepare an adjusted trial balance.
4. Prepare an income statement and a statement of shareholders’ equity for the year ended December 31, 2024, and a classified balance sheet as of December 31, 2024. Assume that no common stock is issued during the year.
5. Record closing entries.
6. Post closing entries to the accounts.
7. Prepare a post-closing trial balance.

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Accounts Cash Accounts Receivable Interest Receivable Supplies Prepaid Rent Land Notes Receivable Accounts Payable Salaries Payable Deferred Revenue Utilities Payable Common Stock Retained Earnings Service Revenue Interest Revenue Salaries Expense Rent Expense Supplies Expense Utilities Expense Totals Debit $ 10,300 9,500 -O- 2,000 7,200 78,000 20,000 24,500 -O- -O- 2,400 $153,900 Credit $ 7,700 -0- 5,300 -0- 79,000 19,700 42,200 -O- $153,900